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Precipio's Q1 2025 Earnings: A Breakthrough for Sustainable Growth Ahead

Wesley ParkThursday, May 15, 2025 5:31 pm ET

4min read

Investors, this is the moment you’ve been waiting for! Precipio (NASDAQ: PRPO) just delivered a Q1 2025 earnings report that screams “turning point” for this undervalued biotech. With a 59.6% narrowed net loss, 43% revenue growth, and a stunning 92% improvement in Adjusted EBITDA, this isn’t just a recovery—it’s a full-blown renaissance. Let’s break it down and see why now is the time to buy, buy, buy!

The Numbers Don’t Lie: A Financial U-Turn

Precipio’s Q1 results are off the charts for a company once plagued by losses. The net loss dropped to $0.59 per share—nearly halved from last year’s $1.46—while revenue skyrocketed to $4.9 million. This isn’t just growth; it’s sustainable growth, fueled by razor-sharp margin expansion. Gross margins jumped from 27% to 43%, thanks to smarter cost controls and higher-margin products.

Yes, the stock dipped 1.7% post-earnings—a buying opportunity!—but look at the bigger picture: PRPO is up 22.5% month-to-date and has the wind at its back for cash flow positivity by mid-2025. CEO Ilan Danieli isn’t just talking about this; he’s guaranteeing it.

Why the Surge? Three Catalysts You Can’t Ignore

MolDx Approval: Medicare’s Green Light
Precipio’s Pathology Services division just scored a blockbuster win with MolDx approval for its NGS testing. This opens the floodgates to Medicare billing, which could double revenue from this division. With test volumes already up 46% YoY and 11 new physicians on board, this is a game-changer.
Margin Expansion: From 27% to 43%—And Rising
The company’s focus on operational discipline isn’t just saving costs—it’s creating a profit machine. With operating expenses now at just 61% of revenue (down from 87%!), every dollar of new revenue is dropping straight to the bottom line.
Performance-Based Incentives: Aligning Management with Shareholders
Precipio’s executives aren’t just getting paid—they’re vesting their stock options based on hitting price targets. That means their bonuses depend on you making money. This alignment is a rare win for investors!

The Dip? A Gift in Disguise

The 1.7% post-earnings drop is irrational. Investors are overreacting to a temporary seasonal slowdown in Q1 revenue (down 9.5% from Q4). But here’s the truth:
- Q2/Q3 cash flow positivity is locked in, thanks to a $400,000 non-recurring income boost and reduced burn.
- The FDA’s reversal on LDTs has removed a major barrier, and distributor partnerships are heating up.
- The Bloodhound™ MPN Panel and IV-Cell™ products are gaining traction, with new customers and validated panels in the pipeline.

This isn’t a company clinging to survival—it’s a growth engine ready to roar.

The Bottom Line: Buy Now, Reap Later

At a stock price of just $6.93, Precipio is undervalued despite its transformation. With cash flow turning positive by mid-year, margin expansion hitting 43%, and Medicare’s MolDx approval unlocking new revenue streams, this is a no-brainer buy.

Don’t let the dip fool you—this is a once-in-a-decade setup for a biotech turning the corner. Act now, and you’ll be laughing all the way to the bank when PRPO’s true potential hits the market.

Rating: STRONG BUY
Target Price: $12-$15 within 12 months
Risk: Regulatory headwinds or delays in product adoption could slow progress, but the momentum is unstoppable.

The clock is ticking—get in now before the crowd catches on!

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